ONGC Videsh Ltd has sought greater financial autonomy to decide on investments of up to USD 1 billion (about Rs 6,400 crore) without government nod to speed up acquisition of overseas oil and gas fields.
Board of OVL, the overseas arm of state explorer Oil and Natural Gas Corp, currently has powers to decide on investment of up to Rs 300 crore. An amount higher than that has to first go to an Empowered Committee of Secretaries (ECS) and then to the Cabinet Committee on Economic Affairs (CCEA).
"We are seeking at least Navratna PSU status for OVL... USD 1 billion investment powers should be granted to us," the company's Managing Director Narendra K Verma told reporters here.
Navratna status gives boards of public sector units financial powers to decide on investment projects of up to Rs 3,000 crore.
"We are are seeking more than Navranta powers," he said. "We are seeking powers to decide on investments of up to USD 1 billion."
Greater financial powers will help the company make quicker decisions on acquiring oil and gas assets abroad.
Verma said the Rs 300 crore financial power for OVL was set in 2000 when the rupee-US dollar exchange rate was completely different. "Right now Rs 300 crore is nothing," he said.
OVL has 35 projects in 16 countries from Brazil to New Zealand and is looking at certain acquisitions in oil and gas rich regions.
Navranta PSU status is granted to a state firm if it has made consistent profits above a certain level. One of the conditions for grant of Navranta status is that the company should be listed on stock exchanges.
"Listing is a requirement but there exemptions can also be granted," he said.
OVL is currently 100 per cent owned by the ONGC. Recently the parent firm turned down a request from the Department of Disinvestment (DoD) to get the company listed saying low oil prices do not offer favourable valuations.
